new grass root refinery investment opportunity in bontang ... · new grass root refinery investment...

New Grass Root Refinery

Investment Opportunity

in Bontang, East Kalimantan

Indonesia

Asian Refining Summit, March 3 and 4, 2016

Triharyo (Hengki) Soesilo

Project Director for Energy Sector

Committee for Acceleration of Priority Infrastructure Delivery

Coordinating Ministry for Economic Affairs

Presentation Agenda

2

Indonesia fuel supply and demand

Concession from Indonesian government

The proposed new refinery location

Pre-feasibility study result for the New Refinery in Bontang

Public-Private Partnership

Estimated timeline

Indonesia fuel product coverage among the lowest

3

Indonesia also imports significant Petrochemicals

4

Government of Indonesia and Pertamina Plans to

increase Crude Processing and Refining facilities

5

Staged implementation of New Grass Root Refineries

and also increasing capacities of existing Refineries

6

Presentation Agenda

7






Estimated timeline

Indonesian government commitments and concessions

1. Government guarantee for the new Refinery investment

2. Attractive Fiscal incentives, such as Tax Holiday for 20 (twenty) years,

3. Concession to use more than 500 Ha of land at no cost, adjacent to Badak LNG

Plant, in Bontang, East Kalimantan

4. Utilization of the existing assets at no cost, such as Utility units and Offsites

facilities at Badak LNG Plant, in Bontang, East Kalimantan

5. Accelerated approval of permits and licenses

6. Fuel Product Off take Guarantee

7. Various concession for 30 (thirty) years, which can be extended to 50 (fifty)

years, such as :

- Concession to import 300.000 barrel/day of crude for the new refinery

- Concession to sell fuel products in Indonesia

- Concession to sell Petrochemical products in Indonesia

8

Presentation Agenda

9






Estimated timeline

The new refinery will be located in Bontang

10

Possible shipping route for crude and products

Bontang is a major Industrial hub for Indonesia

1. Sufficient infrastructure in the city of Bontang, to support a major Liquified

Natural Gas (LNG) industry with 8(eight) LNG trains and Urea Fertilizer

industry complex with 7(seven) Ammonia and Urea plants.

2. Government own an estimated 580 ha of land, adjacent to the Badak LNG

Plant, as the proposed location for the new refinery

3. Deep sea port along a major shipping sea lane

4. Non-existent Earthquake and Tsunami possibilities

5. Many internationally-owned industries are operating and prospering in

Bontang.

12

The new refinery will be adjacent to existing LNG Plant

13

New Refinery location

Bontang Refinery

Tank Farm

Buffer Zone/

Greenbelt Area

Bontang Refinery

ISBL & Utility

Badak LNG Plant

Marine

Terminals

Makassar

Strait

N

Main Urban/

Residential Area

Overview of New Refinery location to LNG plant

14

4(four) LNG trains are currently idle due to limited

availability of natural gas supply

15

The Utilities and Offsites facilities for 4(four) LNG

trains can be utilized for the new Refinery project

16

Available facilities for the New Grass Root Refinery

from existing Badak LNG Plant

1. Electricity generation for 139 MW

2. HP steam production of 350 ton/hour

3. Compressed air 5975 Nm3/hour

4. Nitrogen 1312 Nm3/hour

5. Tank storages

6. Loading dock, Jetties, Loading arms,

7. Blending facilities

8. Shops, Maintenance and Fire fighting facilities

9. Offices, Employees housings,

17

Deep sea port and other plant facilities are available

18

Housing, Hospital, Airport are readily available

19

Presentation Agenda

20






Estimated timeline

The crude definition used for the Pre-feasibility study

is based on typical Middle Eastern crude assay

21

Crude

Unit

Gas Plant

Naptha

Hydroteater

Kerosene

Hydrotreater

Diesel

Hydrotreater

Atmospheric

Residue

De-Sulphurization

Residue

Fluid

Catalytic

Cracking

Naphta

Splitter

Isomer

Unit

Catalytic

Reforming

LPG

Gasoline

Gasoline and

Naphtha

Kerosene/

Jet Fuel

Diesel

Propylene,

Naphtha,

Gasoline

Option 1 – Configuration with Fuel as the main product

Technology to handle Middle East crude

22

23

Total Feed Stock (Ribu barel/hari) 300 300 300 300 300 Basra Light 200 200 200 200 225 Arab Light 100 100 100 100 75

Total Produk Kilang (Ribu barel/hari) 296 300 295 299 275 C3 Mix 3 3 6 6 7 C4 Mix 1 2 1 3 - Gasoline RON 92 121 123 115 117 24 Gasoline RON 95 30 31 29 29 98 Jet Fuel / Kerosene 4 4 3 3 49 Diesel 137 137 141 141 97

Total Petrokimia (Ribu barel/hari) 9 9 12 12 14 Benzene - - - - - P-Xylene - - - - - Butadine - - - - - Poly Propylene 5 5 8 8 10 Poly Ethylene HDPE - - - - - MEG - - - - - DEG - - - - - Sulphur 4 4 4 4 4

Total Investment (Billion USD) 6,8 6,8 6,9 6,9 7,3

IRR Project 5,3% 5,7% 6,7% 6,7% 7,0%

Investment amount and Project IRR for

Configuration with Fuel as the main product

Crude

Unit

Gas Plant

Naptha

Hydrotreater

Diesel

Hydrotreater

Atmospheric

Residue

De-Sulphurization

Residue

Fluid

Catalytic

Cracking

Naphta

Splitter

Isomer

Unit

Catalytic

Reforming

LPG

Gasoline

Gasoline and

Naphta

Diesel

Propylene,

Naptha, Gasoline

Steam

Cracker

Polypropylene

Plant

HDPE Plant

MEG Plant

Aromatics

Complex

Lt. Naptha Gases

Naptha

Polypropylene

HDPE

MEG

Aromatics

Option 2 – Configuration with Fuel and Petrochemical

24

25

RP1 RP2 RP3 RP4

Max Benzene + P-Xylene + Butadine

Max Ron 92 + Ron 95

Max P-Xylene + Diesel

Max Poly Propylene + Ron

92 + C4

Total Crude Feed Stock (thousand barrel/day

300 300 300 300

Basra Light 200 200 200 200

Arab Light 100 100 100 100

Total Fuel Products (thousand barrel/day

182 177 187 185

C3 Mix - - - -

C4 Mix - - - 1

Gasoline RON 92 48 48 48 48

Gasoline RON 95 12 12 12 12

Jet Fuel / Kerosene - - - -

Diesel 122 117 127 124

Total Petrochemical Products (thousand barrel/day)

60 64 60 64

Benzene 11 11 10 10

P-Xylene 33 32 33 32

Butadine 4 3 4 3

Poly Propylene 15 20 15 20

Poly Ethylene HDPE 8 8 8 8

MEG 26 26 26 26

DEG 3 3 3 3

Sulphur 4 4 4 4

Total Investment (Billion USD) 14,7 15,0 14,9 14,9

Project IRR 9,6% 9,7% 9,8% 10,2%

Investment amount and Project IRR for configuration

with Fuel and Petrochemical products

Presentation Agenda

26






Estimated timeline

Private-Public-Partnership Investment scheme

27

Presentation Agenda

28






Estimated timeline

Time line and Major Milestones for this year

29

March

2016

Market Sounding

to Interested

Investors

Investors submit

Investment

proposal

Interested Investors will be provided

with initial Pre-feasibility Study

Information on Bontang New Refinery

Qualified investors submit investment

proposal to Pertamina and Government

of Indonesia

Interested

investors

Identified

Qualified

Investors submit

Proposal

May

2016

Sept

2016

Issuance of

Request for

Proposal (RFP)

Qualified investors will be provided with

Detailed Request for Proposal (RFP)

document

Interested

investors

received RFP

April

2016

Pre-Qualification

of Prospective

Investors

Pre-Qualification process to select

prospective investors from interested

investors for the New Refinery

Prospective

investors

Identified

Selected

investors

announced

After evaluation process, the selected

qualified investor, with the most

responsive proposal will be announced

Selected

Investor

Annnounced

Oct

2016

THANK YOU

Committee for Acceleration of Priority Infrastructure Delivery

Coordinating Ministry Of Economic Affairs

Menara Merdeka,8th Floor - Jalan Budi Kemuliaan I No. 2

Jakarta 10110, Indonesia

T. +62 21 2957 3771, +62 21 2957 3772

F. +62 21 2957 3773

E-mail : [email protected]

new grass root refinery investment opportunity in bontang ... · new grass root refinery investment...

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